Franchising is a business model where a company, known as the franchisor, allows individuals or other businesses, called franchisees, to operate using its brand and business system. In exchange for a fee and a percentage of sales, franchisees gain access to established products, marketing strategies, and support from the franchisor. This arrangement helps franchisees start their businesses with a proven concept. Many popular brands, like McDonald's and Subway, use franchising to expand their reach. Franchisees benefit from the recognition of a well-known brand, while franchisors can grow their business without directly managing each location. This partnership can lead to mutual success.